Senate Bill S7609

2021-2022 Legislative Session

Prohibits bank investments in bad faith landlords

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2021-S7609 (ACTIVE) - Details

Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add §13, Bank L
Versions Introduced in 2023-2024 Legislative Session:
S5401

2021-S7609 (ACTIVE) - Summary

Prohibits a state chartered banking institution from providing financing to a landlord who has engaged in certain bad faith acts.

2021-S7609 (ACTIVE) - Sponsor Memo

2021-S7609 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7609
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             December 17, 2021
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the banking law, in relation to prohibiting bank invest-
   ments in bad faith landlords
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  banking law is amended by adding a new section 13 to
 read as follows:
   § 13. INVESTMENTS IN BAD FAITH LANDLORDS BY  STATE  CHARTERED  BANKING
 INSTITUTIONS.  1.  NO  STATE CHARTERED BANKING INSTITUTION SHALL PROVIDE
 FINANCING FOR OR INVEST IN THE STOCKS, SECURITIES, OR OTHER  OBLIGATIONS
 OF  ANY PERSON, INSTITUTION, COMPANY, OR SUBSIDIARY ENGAGED IN THE BUSI-
 NESS OF LEASING RESIDENTIAL REAL ESTATE THAT HAS:
   (A) BEEN CONVICTED OF ENGAGING IN ILLEGAL CONDUCT  AGAINST  A  TENANT,
 INCLUDING (I) HARASSMENT, (II) COERCION, OR (III) FRAUD;
   (B)  BEEN  CONVICTED  OF  FRAUDULENT  REFINANCING OF LOANS, TAX FRAUD,
 EMBEZZLEMENT, OR OTHER FRAUD OR THEFT RELATED TO  FINANCIAL  MANAGEMENT;
 OR
   (C)  ENTERED  INTO  A  CONSENT  DECREE WITH THE OFFICE OF THE ATTORNEY
 GENERAL IN SETTLEMENT OF A LAWSUIT REGARDING UNFAIR OR  DECEPTIVE  PRAC-
 TICES  AGAINST A TENANT, THAT (I) ESTABLISHES A TENANT RESTITUTION FUND,
 PURSUANT TO SUBDIVISION TWELVE OF SECTION SIXTY-THREE OF  THE  EXECUTIVE
 LAW,  WITH  TOTAL  CONTRIBUTIONS  IN EXCESS OF ONE MILLION DOLLARS, (II)
 RESULTS IN AN INDEPENDENT  PROPERTY  MANAGEMENT  COMPANY  ACQUIRING  THE
 PRIMARY  MANAGEMENT  RESPONSIBILITIES OF ANY OF THE RESPONDENT'S PROPER-
 TIES, OR (III) REQUIRES A  MONITOR  TO  ENGAGE  IN  THE  REVIEW  OF  THE
 RESPONDENT'S  COMPLIANCE  WITH  THE  POLICIES  AND  PROVISIONS OF SUCH A
 DECREE.
   2. FOR PURPOSES OF THIS SECTION:
   (A) "STATE CHARTERED BANKING INSTITUTION" SHALL HAVE THE SAME  MEANING
 AS DEFINED IN SUBDIVISION ONE OF SECTION TWELVE-A OF THIS ARTICLE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13440-01-1
              

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